Dhere Vikas Krishna

MBA 1st
Introduction
A hypothesis is a tentative proposition to certain
phenomenon which the researcher wants to verify
wants to verify when required
An interpretation of a practical situation or
condition taken as the ground for action
A tentative assumption made in order to draw out
and test its logical
For the researcher hypothesis is a formal question
that he intends to resolve.
Example
Employees who are attending training session will
show greater creativity than those who are not
attending
The performance of the automobile A is same as
automobile
Characteristics
1) clarity of concepts: concepts should be
abstract
2) hypothesis should state relationship between
variables if it happens to be relational hypothesis
3)Testability: A good hypothesis should be
tested empirically.
4) specific it should be formulated for particular
and specific problem
5) hypothesis should be clear and precise.
Types
Null hypothesis and Alternative
hypothesis
In the context of statistical analysis we often talk
about null hypothesis and alternative analysis.
A null hypothesis is a statement about the
population whose credibility or validity the
researcher wants to assess based on sample
A null hypothesis is formulated specifically to test
for possible rejection or nullification
 Hence the name Null hypothesis null hypothesis
always states no difference
It is this null hypothesis that is tested by the
researcher.
Example
If we want to compare method A with method B about
its superiority and if we proceed on our assumption
that both methods are equally good, then this
assumption is termed as null hypothesis.
As against this, we may think that method A is
superior to method B or method B is superior to
method B, we are then stating what is termed as
alternative hypothesis.
Null hypothesis is generally symbolized as H
and the alternative hypothesis is represented as Ha
Hypothesis testing procedure
State the Null hypothesis and the Alternate
Step-1
hypothesis
Step-2 Select the level of Significance

Step-3 Find the Critical region

Step-4
Select the Appropriate Test

Step-5 Calculate the Value

Step-6 Make Decisions

Hypothesis Testing Procedure:

Step 1: State the null hypothesis and the

alternate hypothesis.
Null Hypothesis statement about the value of a
population parameter.
Alternate Hypothesis statement that is accepted if
evidence proves null hypothesis to be false.
Step-2: Select the level of significance:
After framing hypothesis, the next step is its validity at a
certain level of significance.
The confidence with which a null hypothesis is accepted or
rejected depends upon the significance level.
Hypothesis Testing Procedure:

Step 3: One tailed and two tailed Tests:

A hypothesis test may be one-tailed or two tailed. In
one tailed test the test statistic for rejection of Null
hypothesis falls only in one-tailed of sampling
distribution curve.
For example in right side test, the critical region lies
entirely in the right tail of the sample distribution.
Example: Is the current advertisement less effective
than the proposed new advertisement?
Hypothesis Testing Procedure:

Step4: Select Test Criteria:

Step: 5 Calculate the Value:

Carry out computation using appropriate statistical test
based on the sample size.
Step 6: Make Decision: Compare the table value
with calculated value. Accepting or rejecting the null
hypothesis depends on whether the computed value fall in
the region of rejection at a given level of significance.
If computed value is higher than the table value, we reject
the null hypothesis and conclude that alternative
hypothesis is accepted.